Trump and China: Drama in the customs dispute - 90 days of hope!

Trump and China: Drama in the customs dispute - 90 days of hope!

Vienna, Österreich - The USA and China recently extended the break in the intensive customs dispute by another 90 days. This decision could turn over the latest conflict before a threatening escalation with tariffs of over 100 percent, reported vienna.at . US President Donald Trump signed a corresponding arrangement and announced this update via the social platform Truth Social. The Chinese Ministry of Commerce also reacted positively and announced that the tightening of the tariffs for US goods also exposing 90 days. However, the existing taxes of 30 percent to Chinese imports and ten percent on US imports remain in force.

A central element of the latest developments is the agreement of both sides to reduce mutual punitive tariffs by 115 percentage points. As a result, the United States lowered the tariffs to Chinese imports from 145 to 30 percent, while China reduced tariffs from 125 to 10 percent to US imports. These customs cuts come into force on Wednesday and initially apply for 90 days. This agreement followed two days of negotiations in Geneva, where there was previously no recognizable willingness to talk about on both sides, such as Buzzfeed reported.

progress and challenges

US finance minister Scott Bessent emphasized that neither the United States nor China are striving for decoupling its economic relationships. However, there are uncertainties because the tariffs are only temporarily exposed. Jens Eskelund, President of the EU Chamber of Commerce in Beijing, expressed concerns about predictability for companies in the course of these developments. Particularly worrying is the ambiguity of progress in the fight against the smuggling of fentanyl output fabrics from China.

Trump is optimistic and found that the United States continues to strive for talks with China in order to clear out the grant weights. He also confirmed that a possible meeting with the Chinese President Xi Jinping could take place this year. Despite these positive signals, distrust in Washington remains great, especially in view of the experience with past trade agreements such as the "phase One Deal". Trump described China as the largest rival in the United States in economic and military questions.

overall economic effects

However, the effects of the trade war go beyond tariffs and possibly into unknown water. The trade war has reached a critical point that could disrupt worldwide trade, as described by Coface . With the introduction of massive tariffs on both sides, prices increased and the uncertainty in the supply chains increases. Chinese exports to the United States have already dropped by 21 percent, while US imports have decreased by 13.8 percent.

The possibility of a recession for both the US and the global economy is increasingly being discussed. Inflation in the United States could reach 4 percent by the end of the year, while unemployment could increase to 5 to 6 percent. These negative economic perspectives were further reinforced by the tariffs and their effects on various sectors, including automobile, chemistry and electronics. In summary, the path to a stable trading relationship between the USA and China remains paved with challenges. While short -term measures are taken, it remains to be seen how long -term a solution can be achieved that meets two sides.